Eventually,external debt must be repaid with the export of real goods and services.

Question

Quizplus · Accepted Answer

When a country borrows money from foreign lenders, it will eventually have to pay back the debt with the money earned from exporting goods and services. Otherwise, the country risks defaulting on its debt and damaging its creditworthiness in the international community. Therefore, external debt must eventually be repaid with the export of real goods and services.

Eventually,external Debt Must Be Repaid with the Export of Real